Student Loans

A new report from the Government Accountability Office finds that taxpayers could be on the hook for $137BN of student loans to be forgiven over the coming years as a result of Obama's executive actions on "income-driven repayment" (IDR) plans.

The latest household debt data, which shows debt rose to $12.4 trillion in Q3, suggest some notable deterioration in the performance of subprime auto loans. This translates into a large number of households, with roughly six million individuals at least ninety days late on their auto loan payments

The past many months have carried a lot of noise about the coming crash, about a tipping point that may be fast approaching. The economics are simply giving way, and they can’t hold the illusion forever. Now that Donald Trump will be calling the shots, the money powers can usher in collapse if they wish, and have ready their scapegoat.

Seventy year old Donald Trump has assumed the Grey Champion flagstaff. In an increasingly chaotic world, normal working class Americans in flyover country were seeking a leader who could bring order, defeat the corrupt establishment, make tough decisions, and capture the zeitgeist of this moment in history. The ruling elite oligarchs and their fawning minions are infuriated the peasants have dared to resist. In their secretive secure spaces, the elites are plotting with one purpose in mind – this uprising must be quelled.

There seems to be a growing assumption that the elites have finally figured out how to turn a capitalist system into a perpetual motion machine by having central banks buy up all financial assets. This is classic “peak of the cycle” thinking, and the more widespread it becomes the closer the system is to breaking down.

"In 2008 I was a sophomore at Towson University. I had no health insurance because my father had lost his job... I was swept away by Obama’s promises of health insurance, breaks for college students, and capitalizing on the mishaps leading to the Iraq war... Eight years and $9 trillion-plus in debt later, I realize that I was fooled by yet another politician looking for my vote... I have seen out of touch Washington elitists and special interests send this country on a path to debt and ruins."

With the Fed releasing its quarterly update on both auto and student loans in its monthly consumer credit report, we have two new records: a new all time high in both car loans at $1.098 trillion, and a record for student loans, which just hit $1.396 trillion.

From here on out politics are only relevant at the extremes - major war, corruption scandal, martial law etc.Short of that, the fiat currency/fractional reserve banking world has such institutional momentum that it really won’t matter whether Trump is picking on bankers and building his wall or Clinton is protecting Wall Street and raising taxes. Debt will keep soaring as it has under every president since Reagan and jobs will disappear as machines replace people, thus bringing the end of the current system inexorably closer.

With the government interfering now for decades with this precarious balance, it is not unexpected to find that the essential link which allowed the market to work efficiently has been fractured. The result is that higher education degrees no longer hold any value for employers.

Every ruling Elite needs the consent of the governed: even autocracies, dictatorships and corporatocracies ultimately rule with the consent, however grudging, of the governed. The American ruling Elite has lost the consent of the governed. This reality is being masked by the mainstream media, mouthpiece of the ruling class, which is ceaselessly promoting two false narratives...

"We are not in a recovery and were not really in a traditional recession. People think of a business cycle as a boom, followed by a recession and then there are automatic stabilizers that revive the economy, but this time, we can't revive. And the reason is that every recovery since 1945 has begun with a higher, and higher, and higher level of debt. And the debt is so high now that since 2008 we've been in what I call, debt deflation."

On a non-seasonally adjusted basis, when removing the artificial Arima-X-13 seasonal factors, August consumer credit soared by a near record $46.8 billion, an absolute outlier month, and surpassed just once in history.

Regardless of whether you’re a millionaire with multiple foreign bank accounts or a recent college graduate with a boatload of debt, the status of being a United States citizen brings with it a burden that will only grow heavier over time.